It’s a fire sale for residents in California, US, who are leaning toward hydrogen mobility. To desperately revive interest in its hydrogen-powered Mirai, Toyota is increasing its discounts to a staggering 70%, making it one of the cheapest new cars in the US.
The move underscores the challenges the Japanese automaker faces in promoting hydrogen fuel cell technology in an increasingly dominated market for battery-electric vehicles.
Cheaper than most gasoline cars
The Mirai’s base model, the XLE model, typically retails at $51,285 (€49,253) but is now available for just $17,005 (€16,331) in Southern California. These unprecedented price cuts position the Mirai as a more affordable option than many compact gasoline-powered cars in the region.
In a cold comparison to the European market – but cars are generally much cheaper in the US – it now trades for the price of a budget city car. In Europe, it would trade for the cost of a Toyota CH-R or one of Europe’s most affordable electric cars, the Dacia Spring.
It’s a painful testimony to the ongoing struggle for carmakers to make hydrogen a viable alternative to switching to electromobility. Last year, global sales of the Mirai plummeted by 54%. Only 1,702 units were sold during the first eleven months of 2024.
Devalorizing the concept
To make the deal even sweeter, Toyota offers $15,000 worth of free hydrogen fuel over six years, equivalent to approximately 48,000 kilometers of driving. This incentive aims to offset the high cost of hydrogen fuel in California, where prices have soared to over $30 per kilogram in some areas.
These incentives aren’t new. Toyota has tried to leverage sales with incredible discounts, but not to much avail. To make matters worse, the Japanese carmaker got sued by owners over misleading marketing about the usability of its hydrogen fuel cell vehicle.
Toyota was also accused of monopolizing hydrogen pricing while forcing owners to refill at stations exclusively from First Element. Sometimes, these stations lacked supply. Questions remain about whether mega discounts, which devalorize the concept and erode prices on the second-hand car market, can offset this reputational damage.
A technological marvel but a tough sell
Like other parts of the world, the Mirai’s appeal has been hampered by the limited availability of hydrogen refueling infrastructure. As of mid-2024, there are only 54 hydrogen refueling stations in the US, with 53 located in California—the only state in the US where the Mirai is on sale. Most stations are concentrated in Southern California, leaving Northern California residents something to wish for.
The challenges facing the Mirai are not unique. Competitors like Honda and Hyundai have also struggled to gain traction with their hydrogen-powered models, the CR-V e: FCEV and Nexo, respectively. Both vehicles remain significantly more expensive than the discounted Mirai, putting pressure on their manufacturers to follow Toyota’s lead.
Cheaper refueling stations in Europe
Despite the current hurdles, Toyota remains committed to hydrogen technology. The company’s president, Koji Sato, has reiterated the importance of hydrogen innovation, pointing to the reaffirmed collaboration with BMW to advance fuel cell development.
Toyota has announced a shift in exploring hydrogen applications to the logistics and industrial sectors, where the technology may find more immediate success.
In Europe, the uptake isn’t much better. However, with a Belgian retail price of € 85,990, Toyota sticks to its guns. Continuity is secured as Toyota Motor Europe announced it would team up with Hydrogen Refueling Solutions (HRS) and ENGIE to roll out next-generation hydrogen refueling systems only yesterday.
Featuring the new Twin Mid Flow Technology, a high-flow dual nozzle, this solution allows both light-duty and heavy-duty vehicles to refuel faster—trucks in under ten minutes and cars in less than five minutes. This innovation must reduce infrastructure costs. Testing begins in late 2025, but in this case, Toyota primarily focuses on commercial vehicles.
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